The cost of living for retirees increased by 2.5 per cent in the last quarter of 2022 and by 7.5 per cent over the year, raising the level of super needed to fund a comfortable retirement.

The income threshold for the Commonwealth Seniors Health Card will increase, while deeming rates will be frozen as part of measures contained in the budget.

The cost of living for retirees has continued to increase off the back of higher prices, but has been in part offset by an age pension boost.

The cost of living for retirees increased by the highest rate for a decade during 2021 due to price rises on non-discretionary purchases.

SMSFs will not be bound by the proposed legislation requiring superannuation fund trustees to formulate a retirement income strategy for members.

ASFA statistics have revealed the increased cost of living in the past year has put greater pressure on retirees.